Weinheim, Germany - Freudenberg Group has sold its Building Systems unit to two German investment companies -- capiton AG as majority shareholder and L-Eigenkapitalagentur as minority shareholder. The unit includes the nora rubber flooring brand and generated sales of €160 million in 2006.
The new owners have said they intend to keep the current organisational structure of Freudenberg Building Systems and have signed a 10-year rental agreement for production and administration facilities.
"We see the acquisition of the Building Systems Business and the nora® brand as an excellent platform for further growth," commented Manuel Hertweck, partner of capiton AG. "We envision significant expansion of the company's position as a premium supplier of rubber floor coverings in both existing and new markets. We will be supporting the investments planned by the management team and will be investigating whether individual measures to expand capacity could be accelerated. In a second phase, we see the chance to generate further growth for nora by acquisitions under a buy and build strategy."
"Freudenberg had been looking for the right buyer for the Building Systems business and the nora brand," noted Dennis Schmick, nora president - North America. "We're enthused about the purchase by capiton and L-EA because of their long-term orientation and growth strategy. North America is one of the global markets in which nora Rubber Flooring has emerged as a strong competitor in the commercial resilient flooring segment, and where the nora brand has become known for both its inspired design possibilities and exceptional performance."
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Press release from nora rubber
Website of nora rubber